FT News Briefing The economics of Russia’s war in Ukraine
Feb 22, 2023
Discover how Ukraine's tech sector is thriving despite the war, showcasing remarkable resilience and reform. Learn about the economic repercussions of Russia's invasion, including mass displacement and disruptions in key exports. Dive into the European Central Bank's shift towards higher interest rates, propelled by strong Eurozone indicators. And hear personal accounts of the conflict's impact on daily life in Kyiv, shedding light on the broader implications of this ongoing crisis.
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Ukraine's Economic Context
- Ukraine, one of Europe's poorest countries, has a Soviet legacy economic structure.
- Multiple crises, including hyperinflation and brutal transition after communism's collapse, have impacted its economy.
Oligarchs' Influence on Ukraine's Economy
- Oligarchs controlling commodity production have led to corruption and hindered economic dynamism.
- Their focus on rent extraction and aversion to competition have made the economy uncompetitive.
Impact of the Invasion
- At the end of 2021, Ukraine's economy showed signs of recovery and investor interest.
- Russia's full-scale invasion in February 2022 caused widespread displacement and halted production.